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Can accountants lead the UK out of recession?

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6th Sep 2012
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The UK’s services sector, which includes accounting firms, had the biggest increase in activity for five months in August, new data shows.

Companies in the UK’s services sector – which also includes hauliers, IT and restaurants and accounts for three-quarters of the UK economy – reported increased business and optimism in August, the monthly Purchasing Managers’ Index (PMI) found.

The services PMI, on which a reading above 50 implies expansion, rose from 51 in July to 53.7 in August. The surprising strength of services countered declines in both manufacturing and construction in August, delivering a welcome boost to confidence

Businesses surveyed said the higher activity was due to a combination of new contracts marketing and, in some instances, better weather.

Service companies were generally confident that business activity would increase over the next year, helped by new products and contracts.

The accountancy profession is usually one of the most resilient sectors in the economy during an economic downturn. Most of the top-50 accounting firms reported steady income growth or even double digit growth. However, recent reports of planned job cuts at KPMG suggest that tougher times may be ahead for some firms.

Does the growing business confidence in the PMI chime with your recent experiences? Tell us in AccountingWEB’s discussion group.

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